TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Recommended 2005-2006 Capital Fund Program for Public Housing Renovations and Resident Services

DATE: April 11, 2005

The purpose of this memorandum is to recommend the adoption of the proposed 2005-2006 plan for use of funds we expect to receive from the U.S. Department of Housing and Urban Development (HUD) under the Capital Fund Program.

The attached resolution would approve a 2005-2006 Annual Statement for the Capital Fund Program.

SUMMARY

· We have not yet received notification from HUD of the amount of the 2005-2006 Capital Fund grant. However, we have developed a proposed plan based on the 2004-2005 grant amount of $530,600.

· The proposed plan includes completing the site work at the Airport Gardens neighborhood and renovation work in 8 of the 11 apartments at the North Columbia Street neighborhood.

· The plan for the 2005-2006 Capital Fund Program will be submitted to the U.S. Department of Housing and Urban Development after approval by the Council.

BACKGROUND

The U.S. Department of Housing and Urban Development (HUD) allocates modernization funds for renovation of public housing and support of resident services to localities that manage at least 250 public housing apartments. Funds are allocated under a formula basis rather than through a competitive application process.

Citizen Participation Process

On January 26, and March 23, 2005, the Council held public forums to receive citizens’ comments on the use of the 2005-2006 Capital Fund grant. No comments were received.

Housing staff held a meeting with residents of public housing on March 1, 2005 to receive comments and suggestions on the use of the Capital Fund grant. Six residents attended the meeting. Comments and suggestions received from residents of public housing include:

· Need to upgrade landscaping and reseed lawns throughout the public housing neighborhoods.

· Need to replace bathroom sinks, bathtubs, toilets and shower surrounds.

· Need to replace screens, windows and doors.

· Need to install security equipment such as locks and security screens.

· Need to provide an organized sports program for children.

Comments received from residents of public housing were considered in developing the proposed Capital Fund Program.

DISCUSSION

We have not received notification from HUD of the amount of the 2005-2006 grant. Therefore, we have developed a proposed plan for 2005-2006 in the amount of $530,600, the amount of the 2004-2005 grant. Also, the plan includes $167,000 that we recommend the Council allocate for public housing renovations under the 2005-2006 Community Development Block Grant Program. The total amount of the funds that would then be available for public housing renovations and resident services in 2005-2006 is $697,600.

PROPOSED 2005-2006 CAPITAL FUND PROGRAM

Proposed Sources of Funds

Capital Fund Program $530,600

Community Development Program $167,000

TOTAL $697,600

Proposed Use of Funds

Airport Gardens Renovations $124,000

North Columbia Street Renovations $444,000

Other Costs $129,600

TOTAL $697,600

The proposed plan for the 2005-2006 Capital Fund Program includes the following activities:

1. Continuation of Renovations at Airport Gardens $124,000

Previous available funding for public housing renovations has been allocated to renovate 26 apartments and a portion of the site work at Airport Gardens. We estimate that about $124,000 would be needed to complete the remaining site work at Airport Gardens. We expect the remaining site work to be completed by April 2006.

Proposed site work would include the replacement of retaining walls, replacement of sidewalks, replacement of playground equipment, replacement of wooden planters, resurfacing parking lots, replacement of part of the storm water drainage system, grading, reseeding and landscaping.

2. Renovations at North Columbia Street $444,000

We propose to renovate 8 of the 11 apartments at the North Columbia Street neighborhood with the funds expected to be available. The remaining three apartments would be renovated in the future as funds become available. Proposed renovation work would include the replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, installation of air conditioning, replacement of stoves and refrigerators, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, and landscaping.

3. Other Cost $129,600

This activity includes $55,600 for general administration of the Capital Fund Program. It also includes $74,000 for the Department of Housing portion of the cost for debt service on the construction of the new Town Operations Center.

RECOMMENDATIONS

Housing and Community Development Advisory Board’s Recommendation: The Housing and Community Development Advisory Board reviewed the 2005-2006 Capital Fund Program on March 22, 2005. Board members in attendance included Carol Siebert, Daniel Brisson, Sarah Donahue, Richard Loeber, and Elizabeth Hollers-Welsby. Carl Marin, Melody Peak, and Evangelee Shuler were absent. The members of the Board voted 5 to 0 to recommend that the 2005-2006 Capital Fund Program be approved as proposed.

Manager’s Recommendation: That the Council adopts the attached resolution.

ATTACHMENTS

1. Proposed 2005-2006 Annual Statement for Capital Fund Program (The Annual Statement provides a summary of proposed Capital Fund activities and cost estimates.) (p. 5).

2. Summary of Five-Year Plan For Public Housing Renovations and Resident Services (This attachment provides a summary of proposed expenditures that reflects anticipated funds we expect to be available for the public housing renovations and residents services over the next five years.) (p. 7).

A RESOLUTION APPROVING AN ANNUAL STATEMENT FOR 2005-2006 CAPITAL FUND PROGRAM (2005-04-11/R-4)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves the Capital Fund Program Annual Statement, as described in the Town Manager’s memorandum to the Council dated April 11, 2005, and that the Town Manager is authorized to submit the Capital Fund Program Annual Statement to the U.S. Department of Housing and Urban Development (HUD), including compliance with the HUD policies, procedures and regulations required therein, for a program of $530,600 in Capital Fund Program funds.

BE IT FURTHER RESOLVED that the Town Manager is hereby designated as the authorized representative of the Town to act in connection with submittal of an Annual Statement and to provide such additional information as may be required.

This the 11^th day of April, 2005.